10/19/2018, 9:37 AM (Source: TeleTrader)
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Italy's bonds fall but euro shows little change

Investors showed on Friday that their enthusiasm suffered a blow with the severe criticism by European Union officials against the expenditure levels in Italy's budget. The stock market fell and government debt sold off. Mario Draghi, president of the European Central Bank, yesterday warned undermining rules "will carry a high price tag for all actors."

The FTSE MIB stock index was up 0.08% at 19,102.71 points at 9:19 am CET, after dipping below 19,000 for the first time since the end of February 2017. The euro was mostly unfazed, as it slipped 0.08% to $1.14442 and 0.08% to £0.8791 at 9:34 am CET. The rates against the Swiss franc and the Japanese yen rose 0.06% to 1.14096 and 0.15% to 128.715, respectively.

The two-year Italian yield jumped 2.7 basis points to 1.53%. The yield on the ten-year note was 2.2 points higher at 3.7% following a rise to 3.732%, last seen in February 2014. The spread against the benchmark German Bund reached the highest mark since 2013. The thirty-year bond yield advanced a point and a half to 4.079%. The session high, at 4.107%, was the strongest in more than four years.

Breaking the News / IT